Joe McHugh (Donegal North East, Fine Gael)
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Question 112: To ask the Minister for Enterprise, Trade and Employment if he has plans to tackle the growing unemployment rate in County Donegal; if he has investigated the possibility of attracting new businesses to the county in addition to providing extra incentives for new indigenous businesses; and if he will make a statement on the matter. [16925/08]

Micheál Martin (Cork South Central, Fianna Fail)
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Donegal is a target location for the IDA with the County now competing for a different type of business to labour intensive manufacturing, which IDA so successfully won over the past four decades. The overseas investor is now seeking locations for more advanced manufacturing or office based solutions, to a great extent depending on high skill and high value work. While this has required a significant change of strategy by the IDA, progress has been made in securing new high value investments from Pacificare, Pramerica, SITA and Abbott Diabetes, with some 1,200 new jobs being added in the County by overseas firms over the last five years. These companies continue to recruit and are actively seeking new staff.

As regards Enterprise Ireland, which serves the indigenous sector, it provides a wide range of supports for high potential start-up companies including financial supports, business and marketing advice, mentoring, product development etc. As part of its infrastructural support for start-up companies, Enterprise Ireland has approved some €3.5m in recent years for developments at Letterkenny Institute of Technology, which is an important aspect of supporting and attracting business to the region.

Enterprise Ireland's results for jobs created in client companies in County Donegal for 2007 show a net gain for the third year in a row with a net increase of over 440 jobs. A growth of 15% over the last three years reflects the investment Donegal companies are making in competing successfully both at home and abroad. During the 3 year period to December 2007, Enterprise Ireland approved over €14m to companies in County Donegal to support the development of new sales, exports and jobs.

Enterprise Ireland has also been very active in supporting the development of community enterprise centres in the North West Region, which are critical to continued enterprise development in rural areas and to the development of an entrepreneurial culture. Nine Community Enterprise Centres in County Donegal have received funding of approx. €2m under the Community Enterprise Centre Scheme to date.

The role of the Donegal County Enterprise Board, is to provide support to micro-enterprises in the start-up and expansion phases, to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Through the provision of both financial and non-financial support, the Board supports individuals, firms and community groups, provided that the proposed projects have the capacity to achieve commercial viability. Financial support is available in the form of Capital Grants, Employment Grants and Feasibility Study grants. In relation to non-financial support, Donegal CEB engages in a range of activities to stimulate enterprise and to support small businesses.

Despite past difficulties in County Donegal, due to the demise of traditional industries such as agriculture, fishing and textiles, there is clear evidence that the county is successfully engaged in a transition to the new economy.

I can assure the Deputy that funding support and initiatives for enterprises in County Donegal is, and will remain, a priority for the State development agencies under the auspices of my Department.

Joe McHugh (Donegal North East, Fine Gael)
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Question 113: To ask the Minister for Enterprise, Trade and Employment his views on setting up a cross-Border business park, between Counties Derry and Donegal; if he has contacted his Northern counterpart to discuss such a proposal; and if he will make a statement on the matter. [16926/08]

Micheál Martin (Cork South Central, Fianna Fail)
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The potential of a cross border business and technology park to attract and grow high-value enterprise in the Letterkenny/Derry corridor was recognised by both IDA Ireland and Invest Northern Ireland. Discussion between the development agencies and relevant stakeholders concluded at the time that the most appropriate solution was the creation of a Virtual Cross Border Technology Park.

This has been one of the most significant developments in recent years and has been brought about by the close cooperation between IDA and INI. This process commenced in 2000 when both State agencies worked together to market the North West of Ireland, namely Donegal and Derry to prospective Foreign Direct Investment as a Cross Border Park. This cross border project was approved EU Structural funding of €10 million by the Interreg Steering Committee, under the Interreg IIIA Programme for Ireland and Northern Ireland, 2000 to 2006.

The fundamental concept of the virtual park is to capitalise on the combined strengths of Letterkenny and Derry as an economic corridor. The aim of the park initiative is to exploit the improved political environment in Northern Ireland to develop an economic corridor of scale in the Letterkenny — Derry area that would act as a catalyst for the economic development of the entire North-West region.

A key focus of the virtual park has been to generate an urban location of scale by developing initiatives that allow Letterkenny and Derry to effectively operate, as much as is practical, as one economic entity. The corridor has a population of circa 120,000 with a hinterland of 300-400,000. In addition, it aims to build a substantial resource of new high quality property solutions on both sides of the border and to develop an integrated, high quality, high capacity and resilient telecoms network, capable of meeting the most demanding needs of both existing and new prospective FDI and indigenous industry companies. In Letterkenny the property solutions consist of a 44 hectares Business Park together with a range of office and technology facilities. Equally there are an excellent range of office and related facilities in Derry.

The project also aims to develop a strong level of participation by the various Third Level Education and research Institutions within the Letterkenny-Derry Corridor, in initiatives and projects that form close collaborative links with industry and build R&D capability in targeted areas. Improvements to the road infrastructure connecting the properties are being conducted as part of the virtual park in both Letterkenny and Derry.

Some key elements of the virtual park initiative have yet to be completed, such as the completion of the property elements by both IDA Ireland and INI before the end-2008 Interreg deadline and the finalisation and implementation of a marketing and promotional strategy that maximises the image of the virtual park.

It is a common goal for IDA and INI that the ongoing development of the business environment is critical and that a common working agenda in the areas of skills enhancement and infrastructure provision should be pursued in the interests of attracting FDI to the island.

I am satisfied that the continued co-operation of the Agencies on the ground together with the continued co-operation of both Governments North and South will lead to renewed economic growth and development in the Donegal/Derry area.